I read this document ( https://www.ahv-iv.ch/p/1.07.d ) but either due to my bad German or the technical subject, it really didn't help me.
What does this mean in practice for two full-time working parents where one earns more than the other?
OK. Can someone explain to me what the erziehungsgutschriften is? Apparently, I need to decide whether the mother or father gets it or it is split.
You mean AHV leaflet 1.07 https://www.ahv-iv.ch/p/1.07.d which is not available in English?
See section 18 of AHV leaflet 3.01 for a basic explanation https://www.ahv-iv.ch/p/3.01.e
Basically and very short.
The ERZIEHUNGSGUTSCHRIFT is for SAHM's like I was. It means that the time a parent spent when rearing kids until they are 16 and stayed at home without own income, this is then calculated towards the state pension you'll get when 64 women or 65 men. This is based on a fictive income and not paid out to you or so.
The little longer version.......I translated the most important part of file 1.07.d for you and hope it helps:
Today's provisions of the AHV Act stipulate that
any educational credits are credited towards the calculation of pensions . These credit notes are not cash payments, but fictitious
income that is only taken into account for the later pension calculation;
meaning SAHM's can raise the amount they will get upon pension too, to a little higher amount.
The starting point for entitlement to the educational credit is
always the parental care. If parental custody is the sole responsibility of one parent the whole educational credit will be automatically credited to him/her.
If the parents exercise parental care together, the right of access to the
amount of the parental credit, depends on whether the parents are married or not, are divorced or not married to each other and what is the extent to which they provide for the common children.
Educational credits may be granted to insured persons at the earliest from the calendar year following the completion of the 20th year of age up to a maximum to 31.st December of the calendar year preceding the retirement of the insured person.
Adoptive children are treated in the same way as natural children with regard to their entitlement to educational credits, i.e. they are considered to be children of the entitled person.
Changes in the crediting of educational credits will only be valid in the following year.
In the event of the birth of a child or the conclusion of an agreement on
the crediting of educational credits, the parents do not yet have to
apply for educational credits at their 'Ausgleichskasse'**. (**meaning the cantonal AHV Offices, sorry I don't know the proper word for that)
Now I hope this gave you a few answers to your questions. Below are the links to the two BAsel realted Cantonal AHV Ausgleichskassen, which might help you further along.
Cheers
EE
http://www.ausgleichskasse-bs.ch/soz...ngen/index.php Basel Stadt
https://www.sva-bl.ch/de/ Basel Land
Thanks. I understand that it is a credit that will count towards your AHV benefits.
I've yet to understand what's the best way to split this (e.g. whether one person could be capped out already so best to give to the other or whether makes sense to split) - but this is more due to the fact that I don't understand AHV and so need to read up on the overall system.
[QUOTE=Phil_MCR;3008742]
I've yet to understand what's the best way to split this (e.g. whether one person could be capped out already so best to give to the other or whether makes sense to split) /QUOTE]
You are welcome, no prob at all.
Like I wrote. How to split , depends on the amount of time a person cared for the kid/s...if you both look equally after them. It'll be 50/50 but if the mom, by example stays at home and has no other income, then it would mean 100% go to her.
Now you state you are both working, so easiest would be to talk amongst you two and work out a kind of percentage, which both of you would think fair.
Revisiting this topic 5 years later I think I finally understand this.
You get a credit to your AHV while your youngest child is less than 16 years old.
The credits amount to three times the annual minimum pension at the time the entitlement begins, i.e. 44,100 francs per year (as of 2023).
The idea is to help maintain pension for parents who stop working to take care of the child. This credit can be taken by one parent or split to both parents.
If one parent is maxing out their AHV contribution and the other isn't (due to big difference in salary) then it could make sense to allocate all of this to the lower paid parent esp. if the higher paid parent cannot benefit from the credits.